Received a demand? / Letter of demand
Received a letter of demand?
This letter cannot force you to pay anything. That takes a court order, and a court makes one only once a claim is filed and heard. But a letter that is ignored is usually followed by a claim, with costs added, so use the time it gives you.
On this page: First steps Your options Good to know How we help Common questions Enquire
Four things to do first
Your options
- Pay. If you owe it, paying by the deadline ends the matter and avoids court costs. Ask for written confirmation that it is settled.
- Offer a payment plan. If you owe it but cannot pay at once, propose instalments in writing. A plan both sides sign usually costs everyone less than a court claim.
- Dispute it. If you do not owe it, or not all of it, say so in writing with your reasons and the documents that support them.
- Get advice first. If the amount is large, the claim is unclear, or you have a claim of your own against them, talk to us before you reply.
Good to know
How we help
We read the letter and your documents, tell you where you stand, and write the reply: payment terms, a dispute, or an offer. If the matter goes to court, we can act for you there. We quote before we start.
If money is tight across all your bills, the National Debt Helpline offers free financial counselling on 1800 007 007.
Common questions
Have another question? Phone 1800 776 529 or send us a message.
They can file a claim at any time before the limitation period ends. A letter of demand is usually the last step before that, which is why the deadline matters.
A letter on its own does not. If the debt is for consumer credit, such as a personal loan or credit card, and a payment is at least 60 days overdue, the creditor may be able to list a default on your credit report after giving you written notice. A court judgment against you can be listed on your credit report for up to five years if the debt involved credit, such as a loan, a credit card or an account you were allowed to pay later.
There is no legal duty to reply, but a reply in writing creates a record. If the matter reaches court, the judge may see how each side behaved.
Law referred to
- Limitation of Actions Act 1958 (Vic) ss 5(1)(a), 24(3), 25.
- Competition and Consumer Act 2010 (Cth) sch 2 (Australian Consumer Law) s 50.
- Privacy Act 1988 (Cth) ss 6(1) (definition of “court proceedings information”), 6Q, 20W, 21D.
- Australian Competition and Consumer Commission and Australian Securities and Investments Commission, Debt Collection Guideline: For Collectors and Creditors (Regulatory Guide 96, April 2021).
Last reviewed: October 2026, by a Victorian solicitor with a current practising certificate. This page is general information about the law in Victoria as at October 2026. It is not legal advice about your circumstances.
Ask us to review it
Tell us briefly what has happened. We reply within one business day, by phone, email or text, whichever you prefer.
What happens next
- Send the form, or call.
- We reply within one business day.
- We tell you your options and what each would cost, before any work starts.
Phone: 1800 776 529
Email: info@lettersofdemand.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, email and online.